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4. Martha Higgins is currently trying to borrow some money from the bank. She has listed her personal automobile ($25 000) on the business balance sheet to make the statement look more attractive to the banker. a. Is this a reasonable thing to do? b. Which GAAP(s) affect this situation? Explain.

4. Martha Higgins is currently trying to borrow some money from the bank. She has listed her personal automobile ($25 000) on the business balance sheet to make the statement look more attractive to the banker. a. Is this a reasonable thing to do? b. Which GAAP(s) affect this situation? Explain.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4. Martha Higgins is currently trying to borrow some money from the bank. She has listed her personal automobile ($25 000) on the business balance sheet to make the statement look more attractive to the banker, a. Is this a reasonable thing to do? b. Which GAAP(s) affect this situation? Explain.
Transcribed Image Text:4. Martha Higgins is currently trying to borrow some money from the bank. She has listed her personal automobile ($25 000) on the business balance sheet to make the statement look more attractive to the banker, a. Is this a reasonable thing to do? b. Which GAAP(s) affect this situation? Explain.
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